Britain Issues $1.2B E-3D AWACS Support Contract
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In August 2005, SpaceWar.com covered a GBP 665 million (then $1.2 billion) long-term contract with Northrop Grumman for the Sentry Whole Life Support Program, issued by the UK Ministry of Defence, Defence Logistics Organization. Under the contract, NGC’s team will provide aircraft-maintenance and design-engineering support services through 2025 to improve availability and reduce overall ownership costs for the United Kingdom’s Royal Air Force fleet of 7 E-3D Sentry Airborne Warning and ControlSystem (AWACS) aircraft. As is typical of recent British contracts, the government has chosen a public-private partnership approach, with availability percentage guarantees for the aircraft.
The Sentry is the UK’s principal early warning and control aircraft and provides vital strategic support to the UK armed forces in operations around the world. Since its introduction into service in 1992, the E-3 Sentry has been used in every major UK military operation, seeing extensive use in campaigns in Bosnia, Kosovo, Afghanistan and Iraq.
Despite the projected savings, however, the RAF apparently needs to cut its fleet costs even further…
- The Contract & Industry Team
- UK E-3D Updates [updated]
The Contract & Industry Team
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Northrop Grumman was selected as the Preferred Bidder by the UK Ministry of Defence in July 2004, and deal was concluded just over a year later, in August 2005.
The contract is a fixed-price contract for the first five years, and the remaining 15 years the contract is target-cost incentive-fee. In addition, the contract is fully funded for the entire 20-year term. It is envisaged that implementing the Sentry future support program will reduce the cost of supporting Sentry over the next two decades by 12-20%. Under the BAE Systems CS&S’ GBP 75 million NISC (Nimrod Integrated Support Contract), availability of the Nimrod MR2 fleet is up by 40% while support costs are down by 8%. Minister for Defence Procurement Lord Drayson, said that:
“Effectively the new contract will halve the number of aircraft in the support hangar…. This contract is also good news for the British taxpayer as it will reduce the cost of supporting Sentry by over 12% – saving GBP 90 million – whilst creating over 50 jobs here in Lincolnshire.”
Drawing on its experience with the US Air Force’s 707-based J-8 Joint STARS ground surveillance aircraft Total System Support Responsibility Program, Northrop Grumman’s Integrated Systems sector will have engineering-support responsibility and design authority for the Sentry Whole Life Support Programme. The company’s Electronic Systems sector will provide radar capabilities, while Northrop Grumman’s Space Technology sector will offer highly sophisticated, interactive, electronic technical-manual support.
Through the innovative fleet availability contract, Northrop Grumman will be responsible for all aircraft scheduled maintenance including the provision of spares world-wide, design authority services and management of the aircraft structural integrity work, technical publications and a training service for all Sentry maintenance personnel. Northrop Grumman also provides the radar and in-service support for the E-3D’s radar, and is the systems integrator for the replacement mission system.
A particular feature of this contract will be the close partnered relationship engendered between the Ministry of Defence and the Industry team – all aimed at maintaining 24/7/365 availability world-wide. British companies BAE Systems and FR Aviation in Bournemouth, plus the UK division of AAR Corp. based in Mitcham, will operate as sub-contractors and create over 50 jobs based at RAF Waddington.
BAE Systems share of the total contract is expected to be worth close to GBP 100 million (USD $178.7 million) over the life of the program. Their role will be to provide depth maintenance, ground maintenance training and on-line technical information. Within the contract, BAE Systems is also responsible for the construction of a new hangar annex within the grounds of RAF Waddington, which is being built to co-locate the 150 people that will be moving on-base to deliver the holistic service provision.
BAE Systems Customer Solutions & Support (CS&S) military air business will be applying the experience from their Nimrod MR2 maritime surveillance aircraft and VC-10 transport/tanker integrated support contracts. Technical information will be delivered through the CS&S Integrated Asset Management (IAM) service also scheduled for implementation on Nimrod MR2 support and Tornado fighter support and upgrade. The IAM service incorporates access via CS&S’s trilogiView technical browser, already chosen for 26 other UK MOD programmes and by Lockheed Martin for the F-35 Joint Strike Fighter.
FR Aviation Services, a subsidiary of Cobham plc’s Flight Operations and Services Group, will be the maintenance provider on E-3D under a partnering agreement with CS&S. This latter agreement is based on the relationship FR Aviation Services and CS&S developed supporting the Nimrod fleet at RAF Kinloss for the UK’s Defence Logistics Organisation.
UK E-3D Updates
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Sept 16/09: The E-2D damaged in a December 2007 accident is ready to return to the fleet – but the GBP 3.5 million repair wasn’t easy. Keith Monslow, the Joint Sentry Support team’s operations manager, says in the UK MoD’s Desider article:
“It was the worst possible place to strike the aircraft – in the fuel gallery. The whole area was covered in fuel, which soaked right the way through to the lower lobe, contaminating the electrics. Opening up the aircraft to inspect the damage just made it worse. Fuel covered all the electrical areas. And some of the items needed in the repair aren’t even made any more so we knew we would be hunting all over the world for places to fabricate them.”
Sentry ZH106 required complete gutting of its electrical systems, 25 miles/ 40 km of new cabling, and around 2,200 new parts, all of which had to be performed with very careful attention to the aircraft’s balance as items were inserted and removed. There was also a bit of help from a nearby earthquake, which actually solved an ongoing problem with the aircraft shifting overnight. UK MoD.
Aug 1/08: Flight International reports that the Royal Air Force has decided against mothballing 2 of its 7 E-3D Sentry AWACS planes, and will instead look to cut costs and hours flown by reducing the number of aircrews assigned to the type. The RAF reportedly decided that mothballing the aircraft was a more expensive option in the long run.
The UK MoD is also considering an upgrade to the aircrafts’ computers, displays, and mission system, using open-architecture electronics bought off the shelf. The upgrades would be an additional budget item, but one of the ancillary benefits would be slightly lower through-life support costs.
Dec 21/07: So, what happens when unanticipated repair expenses hit the fleet? A pair of E-3Ds were apparently damaged when ground equipment items were not sufficiently secured, and high winds reportedly sent them crashing into an E-3D on the tarmac. A second aircraft reportedly received a glancing blow.
Now Northrop Grumman Corporation has announced a contract from the UK Ministry of Defence’s Sentry Integrated Project Team for the repairs. The NGC release refers to a contract issued under the existing Sentry E-3D Whole Life Support Programme (WLSP), though the contract itself sounds like a contract modification within the existing program. The repair will involve the replacement of 4 aircraft frame structural elements, which were crushed, and a major aircraft skin. In addition, a fuel system gallery and main electrical distribution panel were damaged.
”[Northrop Grumman’s team] will deliver to challenging time, performance and cost targets, with the aircraft due to be returned to service with the RAF in November 2008…. The structural aspects of the repair and the electrical elements represent a considerable challenge, primarily due to the lack of availability of structural and other components that will necessitate significant manufacturing effort.”
